Wednesday, January 6, 2010 Vernon, NJ.
There was a minor disruption of service at Mountain Creek’s Appalachian and the
adjacent Sugar chairlift caused by a fire in the pool house containing the
pumps and heaters that services the outdoor heated pool.

At approximately 10:40 am fire companies from Vernon, McAfee and Hamburg
responded to reports of flames involving the roof of the approximately 15 x 15
building which sits adjacent to the pool and some distance from The Appalachian
itself.

Guests and staff in The Appalachian were evacuated to the
restaurants at the resort as a safety precaution, and the Sugar chairlift which
services beginner terrain directly slopeside to The Appalachian was closed for
an hour while the fire was brought under control and extinguished. After
complimentary lunch and assurances that all guests were comfortable, all guests
were re-admitted to the building within the hour, and the lift service
restored. There were no injuries reported.

The cause of the fire and the extent of the damage are
currently under investigation by the Vernon Police Department detectives and
the Sheriff’s Office; initial indications are that a heater cut-off control
malfunctioned leading to over-heating and ultimately ignition. The pool will
remain closed until necessary repairs are assessed and completed. Because of
the rapid action, the primary structure itself appears sound and may be able to
return to operation sooner rather than later.

Resort COO Frank DeBerry credited the 3 responding fire
departments with the rapid response and securing of the incident and for taking
extra precautions for the guest safety, and thanked his own staff for the
smooth and professional interaction with the incident commander to support the
operation, both at the fire and throughout the resort areas unaffected by the
disruption.

“Obviously, no one welcomes disruptions to their business.
We are fortunate today that the incident was relatively small, that the
response was quick and energetic in knocking the fire down, and that above all
everyone remained safe and uninjured. I look forward to getting back in the
warm pool very soon this season”, said DeBerry.